P11.2A (LO 2, 3, 4), AP Ayala Corporation accumulates the following data relative to jobs started and finished during the month of June 2020. Costs and Production Data Actual Excel Standard Raw materials unit cost Raw materials units Direct labor payroll Direct labor hours Manufacturing overhead incurred Manufacturing overhead applied Machine hours expected to be used at normal capacity Budgeted fixed overhead for June Variable overhead rate per machine hour Fixed overhead rate per machine hour $2.25 10,600 $120,960 14,400 $189,500 $2.10 10,000 $120,000 15,000 $193,500 42,500 $55,250 $3.00 $1.30 Overhead is applied on the basis of stan tard machine hours. Three hours of machine time are required for each direct labor hour. The jobssold for $400,000. Selling and administrative $40,000. Assume that the amount of as inaterials purchased equaled the amount used. Instructions a. Compute all of the variances for (1) direct materials and (2) direct labor. b. Compute the total overhead variance. c. Prepare an income statement for management. (Ignore income taxes.)